MPW

The following post is from Marcus Today. Insiders club are "hot tips" from members. For them to "highlight it" there has to be tangible substance to the recommendation. Henry Jenkins from Marcus Today then does additional research before it is featured. 

- Most of the stocks are well on their way to establishing a profitable dividend paying business in the near term.

I went into Stockopedia and did a comparison of MPW with GSW (our best performing stock in the Speculative Portfolio) and it stacks up very well on growth, revenue and eventually EPS.

I should have mentioned it at today's meeting but I forgot.

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Good to see a few new insights from members on the Insiders Club.

These are a great heads up for further research. So, in that spirit today I will have a look at MSL Solutions (MPW).

Thanks to Clarence Beeks for that insight.

For those of us old enough to remember Trading Places.

MPW

The company has only floated on the exchange this year with a $15m IPO at 25c.

The story so far

What does MPW do?

The company is a global SaaS player in the sport, leisure and hospitality sector providing software data and media solution with 2000 clients globally.

Guidance has been reaffirmed recently as the prospectus promised.

• Revenue of $35.557m
• EBITDA $6.45m
• NPATA $5.9m

Since listing, Regal Funds management has been selling down its holding and now owns 4.57%.

MPW also has a 26.5% shareholding in a company called Zuuse which is merging. MPW will end up with 11.5% of the merged company. According to valuations it is worth $107m. MPW has the asset on the books for $2.2m ($10m in value uplift).

Love this comment:

“The board of MPW is pleased with the outcome”.

Our Insider Clarence Beeks likes the stock because Steve Johnson from Forager Funds owns a slice of the company (5.45%). This is a positive. He is a well-regarded contrarian investor.

The shares are trading around the issue price as the market may need some time to understand the business model. A negative is the sell down from Regal and Ellerston Capital as well. This is weighing on sentiment and we need to see some positive announcements from the company. Not a lot of liquidity either so hard to get set. The resignation of the auditor back in July is not a great look and we are waiting more information on the proposed acquisition of Pricap.

Good luck Clarence. I will be watching from the sidelines at the moment